Q9In the 18th century, _____ was the first to formulate the principle of comparative advantage.a.David Hume.b.Karl Marx.c.Adam Smith.d.Thomas Malthus.e.David Ricardo.Clear my choice

The concept of Comparative advantage was firstly introduced by the British political economist David…

Answered: Q9 In the 18th century, _____ was the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 1SCQ: True or False: The source of comparative advantage must be natural elements like climate and mineral...

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In the 18th century, _____ was the first to formulate the principle of comparative advantage.

David Hume.

Karl Marx.

Adam Smith.

Thomas Malthus.

David Ricardo.

Clear my choice

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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